Nestlé Fails to Exit Suit Over Sustainable Sourcing Statements

A consumer may proceed with claims alleging Nestlé USA Inc. misled consumers to believe chocolate products were sustainably produced when they were made with cocoa from West African plantations that use child labor, a federal court in California said Monday.

Renee Walker alleges she bought hot cocoa mix and other products because of references to sustainable sourcing and representations that Nestlé’s “Cocoa Plan” supports cocoa farmers or helps improve their lives. She seeks to represent a nationwide class.

Walker also alleges that child labor conditions have worsened rather than improved since the inception of the company’s Cocoa Plan, meant to ...